Why ORC?

ORC (Orange Reserve Coin) is the equity token of the Orange Dollar protocol. It represents ownership of the reserve's surplus — the value left after all OD liabilities are covered.

How ORC Earns Yield

Every time anyone mints or burns OD or ORC, the protocol charges a 1.5% fee. This fee stays in the WBTC reserve.

Since ORC represents a claim on the equity (total reserve minus OD liabilities), every fee collected increases the WBTC backing each ORC. Over time, as more people use the protocol, ORC becomes more valuable.

ORC Pricing

ORC price is determined by a simple formula:

equity = (reserve WBTC x TWAP) - OD supply
ORC price = equity / ORC supply

If the reserve holds 1 WBTC ($100,000), OD supply is $20,000, and ORC supply is 80,000:

• Equity = $100,000 - $20,000 = $80,000
• ORC price = $80,000 / 80,000 = $1.00 per ORC

The Risk

ORC absorbs Bitcoin's price volatility. If BTC drops, the equity shrinks and ORC loses value. If BTC rises, equity grows and ORC gains value. The fees provide a baseline yield, but ORC is not a stablecoin — it's an investment in the reserve.

When to Buy ORC

ORC is attractive when:

• You're bullish on BTC (you benefit from price appreciation + fees)
• The reserve ratio is moderate (400-600%) — more room for growth
• Protocol activity is high (more fees accruing)

ORC is riskier when:

• BTC is in a downtrend (equity shrinks faster than fees accumulate)
• The reserve ratio is near 400% (further BTC drops could cause losses)